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Jakarta police had earlier this year deemed the U.S. car-hailing
service illegal, saying its drivers did not pay the correct
taxes and the company did not have the license needed to operate
as a form of public transport.
In a statement, Uber said it is working with the office of the
city's governor, Basuki "Ahok" Tjahaja Purnama, and Indonesia's
investment coordinating board to establish itself as a legal
entity in Indonesia, pay taxes, have adequate insurance and
ensure its "partner vehicles" undergo regular inspection.
"Previously there was tremendous regulatory ambiguity," Uber
spokesman Karun Arya said in an email.
"Governor Ahok has now provided clear direction for Uber in
terms of specific requirements for Uber and other ride sharing
platforms to operate and thrive in Jakarta."
Uber has registered with Indonesia's investment coordinating
board as a technology or web company, Arya added.
There was no immediate comment from the Jakarta governor's
office.
Privately owned Uber has grown aggressively worldwide with its
matchmaker service for drivers and passengers, but a lack of
regulation for the relatively new business model has brought it
to the attention of authorities.
The company is also facing stiff competition from rivals
U.S.-based Lyft, China's Didi Kuaidi, Southeast Asia's GrabTaxi
and India's Ola, which recently formed a global ride-sharing
partnership.
In Indonesia, Uber currently operates in Bali, Bandung and
Jakarta, a city notorious for its traffic congestion and lack of
public transport.
In an email, Uber said it planned to expand to more cities in
Southeast Asia's largest economy next year, and would boost the
number of its drivers to 100,000 by 2017 from more than 12,000
currently.
(Reporting by Eveline Danubrata; Editing by Miral Fahmy)
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